Does Compulsory Insurance Cover Water Damage?
2 Answers
If your vehicle is submerged in water due to weather or other reasons, it is not covered by compulsory traffic insurance. Here is relevant information about compulsory insurance: 1. Definition: Compulsory insurance, also known as statutory insurance, is a type of insurance mandated by law. While commercial insurance generally operates on a voluntary basis, compulsory insurance applies to specific high-risk scenarios that have a significant impact on public interests. 2. Compulsory Traffic Insurance: According to the 'Regulations on Compulsory Traffic Accident Liability Insurance for Motor Vehicles,' compulsory traffic insurance is a mandatory liability insurance where the insurer compensates for personal injuries, fatalities, or property losses caused by the insured vehicle in a road traffic accident, within the prescribed liability limits.
I drive quite often, and a while ago, I encountered a heavy rainstorm. My car accidentally got flooded, and I initially thought the compulsory insurance would cover the damages. However, when I asked the insurance company, they said the compulsory insurance only covers losses caused by hitting others, not the water damage to my own car. This was a real headache—repairing the engine cost me several thousand, and I had to pay out of pocket. Later, I learned my lesson: compulsory insurance is essentially liability insurance, covering only third-party accidents, not physical damage to the vehicle itself. To protect against flood damage, you need to purchase the commercial auto insurance's vehicle damage coverage. If you live in an area prone to flooding, adding water submersion coverage is even safer. I recommend everyone check their vehicle's seals before the rainy season, park on higher ground, avoid driving through deep water, and never skimp on these insurance coverages to save money. A fall into a pit, a gain in your wit—my friend also shared a similar experience. Being prepared early can save a lot of headaches.
